The Tanaka Memorial predates Pearl Harbor by some years; the attack
on Pearl Harbor would not have been envisaged when the Tanaka Memorial
was written.

David Bergamini writes, in Japan's Imperial Conspiracy, that
Japan had a "Strike North" faction, which wanted to attack the
USSR instead of the US. Instead, the "Strike South" faction won.

The USSR would have been vulnerable had Germany & Japan mounted
a joint attack, in accordance with the Anti-Comintern Pact; that is one
reason why Stalin made a pact with Hitler. That Pact, I believe, undid
the logic of the Strike North position.

Of course, the Japanese were not the only ones to attempt world conquest.
Napoleon, the Czar who defeated him, the British Empire, the Kaiser's Germany,
the Soviet Union, Hitler, the United States, and the Zionists, have all
attempted it.

Dated July 25, 1927, the Tanaka Memorial is said to have been presented
to the Japanese Emperor by Premier Baron Gi-ichi Tanaka. A copy found its
way into the hands of the Chinese Government, which released it publicly;
the Japanese Government then condemned it as a forgery.

Carl Crow's Introduction is from p. 5 to p. 16. His comments, e.g. the
footnotes to his own Introduction, as well as to the text of the Tanaka
Memorial itself, are enclosed within square brackets [thus].

My comments are enclosed in curly brackets {thus}. The full text
of The Tanaka Memorial begins on p. 17 below. Enquiries or Comments
to me (Peter Myers) at contact.html.

JAPAN'S DREAM OF WORLD EMPIRE

THE TANAKA MEMORIAL

Edited, with an Introduction by CARL CROW

George Allen & Unwin, London 1943.

{p. 5} INTRODUCTION {by Carl Crow}

ONE of the most famous sights in the beautiful Japanese city of Kyoto
is a conical mound which is known as the "Ear Hill." Until about
twenty-five years ago it was pointed out to tourists by every Japanese
guide, who told the story of how Hideyoshi, the great national hero of
Japan, conquered Korea after a war which lasted seven years. At the conclusion
of the war thousands of ears and noses of the vanquished foe were sent
back, pickled in wine, to be entombed here as visual evidence of Japanese
might. According to Japanese history, they were cut from the bodies of
38,000 Chinese and Korean soldiers who had been slaughtered in the last
week of the war. This conflict had lasted much longer than the Japanese
anticipated and the noses and ears were intended to show the desperation
of the struggle. The inscription on the mound records this great battle
as having taken place in October 1598.1

The great Hideyoshi, who has been the outstanding national hero of Japan
for more than three hundred years was, by his invasion of Korea, attempting
to achieve the great Japanese ambition to place the emperor on the throne
of the world. His great plan for a world empire was set forth in some detail
in a letter to his wife, which waS written by his private secretary in
the formal third person style affected by Oriental dignitaries. The letter,
which was dated May 18, 1592, tells of Hideyoshi's triumphal advance into
Korea and his plans to take Peking, the Chinese capital. At the time the
letter was written he had met with no effective opposition and he wrote
with a great deal of confidence, making plans for the government of North
China and further conquests.

[ 1 A History of Japan, Murdock and Yamagata, Yokohama, 1903]

{p. 6} to the south. He assumes that China is already a Japanese possession,
just as it is now assumed by his successors, the war lords of Japan. The
letter says that transports were to be sent back to Japan for the purpose
of embarking more troops and continues:

"The entire fighting force in Korea under the personal command
of our Lord Hideyoshi will invade China. It is planned that Peking, the
national capital of China, will be occupied by our Lord before the end
of this year. In the absence of our Lord, Miyabe Keijun and Hashiba Hideaki
will be entrusted with the entire charge of the Korean capital and the
Nagoya military headquarters, respectively. They have already been instructed
to present themselves at the military headquarters of our Lord by August
of this year. "

Upon the conquest of China, the authority over that empire will be entrusted
to His Excellency Lieutenant Hidetsugu. Therefore, our Lord has already
advised the Lieutenant to prepare for this important office by June of
next year (1593)"

His Majesty our Emperor has consented to take up his residence in the
national capital of China (Peking). Therefore, after China has been conquered,
our Emperor will undertake a long journey from Kyoto to Peking. Our Lord
Hideyoshi has given instructions that due preparations be made for this
great national event. "

About ten of the large counties surrounding the city of Peking will
be set aside and their revenues will be used exclusively for the expenses
of the imperial court and of the imperial household. Either Hashiba Hidekatsu
or Ukida Hideiye will be entrusted with power in Korea. As for our Lord,
he will at first reside in Peking, whence he will control the national
affairs of China, Japan, and Korea. After the founding of the new empire
is completed, he will appoint some man of worth as his deputy at Peking
and will establish his own permanent residence at Ningpo (a seaport in
South China, near to Japan).

{p. 7} " All military leaders who shall render successful vanguard
service in the coming campaign in China will be liberally rewarded with
grants of extensive states near India, with the privilege of conquering
India and extending their domains in that yast empire."

The great world empire which Hideyoshi wrote about with such confidence
was never founded. He did not even get to Peking, which he was so confident
would be in his hands in a few months. He had greatly underestimated the
fighting strength of the Koreans who put up a stubborn resistance and held
up the Japanese troops until Chinese soldiers arrived. It was only through
Korea that a land attack on China could be made and he had failed in an
attempt to secure Korean aid. Before starting on his campaign he had invited
the King of Korea to join him, but that monarch sent back a contemptuous
reply, saying that for Japan to attempt the conquest of China was like
a bee trying to sting a tortoise through its armour. Confident of his ability
to crush the Koreans, Hideyoshi went ahead with his plans, but the King
of Korea was right, for the Japanese never crossed the Chinese borders.
The story might have been different but for the fact that Hideyoshi died
about the time the "Ear Mound" was formed.

The exploits of Hideyoshi have been glorified in Japanese song and story
for more than three centuries and every school boy has been brought up
with the idea that the unfulfilled ambition of this great national hero
was one which the country would some day achieve. EveryJapanese soldier
has been taught that he might be another Hideyoshi. It was an inspiring
ideal, for the Japanese believed then, as they do now, that the emperor
is an omnipotent god who is destined to rule the world, and that foreign
nationals who refused to accept his rule were actually rebels against divine
authority.

The war in Korea was a long and costly affair and

{p. 8} Japanese historians have told of its cruelties and barbarities.1
Instead of crushing the Koreans and forcing them to join in the attack
on China, it merely impoverished and embittered them. Japanese attempts
to rule the Koreans failed partly because the death of Hideyoshi threw
Japan into a bitter controversy over his successor, and in a few years
all the Japanese troops were withdrawn~ But the idea of Korea as a corridor
through which Japan would eventually conquer China was firmly fixed in
the Japanese mind. Every Japanese patriot has believed that Japan must
conquer Korea, as a prelude to conquering China - conquer China as a prelude
to the conquest of all Asia and the domination of the world....

Hideyoshi's invasion of Korea was not such a brilliant military victory
as he had anticipated, but it acquired lustre because it started Japan
on a new era of progress and opened up visions of a world of which the
Japanese knew very little. Before that time Japan was a rude and barbarous
country in which even the simple arts of weaving and pottery-making were
imperfectly developed. The Koreans, thanks to their intimate contact with
the Chinese, were skilful potters and weavers and were in fact among the
most advanced of the Asiatic nations. They had been printing books from
movable type for some years before it was known in Western countries.

Hideyoshi's soldiers did a very thorough job of looting. They took back
with them all of the movable type of Korea and all of the fine examples
of pottery and weaving they could lay their hands on. They also made prisoners
of the printers, potters and weavers, who remained in Japan as slaves and
taught theJapanese. The captors were apt pupils and their art has aroused
the admiration of the world, but the Japanese have never given credit to
the Koreans from

{p. 9} whom they learned. Japan did not rule the country which their
great hero had conquered, but he had accomplished the miracle of subduing,
impoverishing and almost annihilating a country and of transferring its
cultural assets to his own land.

Hideyoshi had been strong enough to control the feudal lords of Japan
and weld the military machine of the country into a single unit, but after
his death the feu~al differences were re-established. As the feudal lords
did not trust each other, no one was strong enough to go ahead with Hideyoshi's
plan of world conquest. Nevertheless the idea that the world belonged to
Japan by virtue of the fact that their emperor was a god destined to rule
the world was never forgotten.

For generations during the Ming dynasty Japanese pirates ravaged the
coast of China, justifying their raids by the fanciful idea that when
they looted a Chinese city, they were collecting the tribute which these
cities should have been bringing to the emperor. There is not a city
around the mouth of the Yangtse which does not record these piratical attacks
of the Japanese. Along the coast of Chekiang and Fukien provinces are still
to be seen the remains of many ancient watch towers which were erected
to keep an eye on the approach of pirates and summon troops for defence.
These piratical raids were not confined to the nearby China coast, but
extended as far south as Manila and Siam.

In the meantime the Portuguese, Spanish, Dutch and English, whose ships
were scouring the seas in search of trade, or on piratical ventures of
their own, made occasional calls at Japanese ports. Catholic missionaries
came to the country and gained a foothold and made thousands of converts.
Japan had known, in a vague way, of these Western nations with their great
sailing ships and cannon and muskets and other arms which were far superior
to any

{p. 10} possessed either by China or Japan or any other Asiatic country.
Here were forces which Japan did not understand and which aroused the apprehension
of her statesmen. The result was a complete reversal of policy.

In less than fifty years after Hideyoshi had set out to conquer the
world, the rulers of Japan decreed that no Japanese should go abroad under
pain of death, that no Japanese ship should be built which was big enough
to cross the China Sea and that foreign ships which arrived should be burned
and the crews massacred. The regulations were particularly directed against
the Portuguese who were more active than any other country in developing
trade in Asia.

The Portuguese, who were anxious to continue their profitable trade,
sent four aged and distinguished envoys to Kyoto to plead for the withdrawal
of these restrictions. When their arrival was announced to the Shogun he
ordered the four envoys beheaded and the same fate befell fifty-seven of
their attendants. Thirteen were allowed to return to Macao to tell the
dreadful tale and take a message which bade the Portuguese "Think
no more of us, just as if we were no longer in the world." With the
exception of a limited trade which the Dutch carried on under very severe
and humiliating restrictions, this isolation continued for a little more
than 200 years. In their determination not to allow any foreigner to set
foot on the sacred soil of their country, the Japanese constructed an artificial
island in Nagasaki harbour where the Dutch traders were confined.

When Commodore Perry, with a powerful fleet at his command, induced
the Japanese to agree to open the country to foreign trade, and Townsend
Harris negotiated the first treaty, the Japanese statesmen knew that the
old policy of isolation was definitely ended, and sinceJapan was compelled
to associate with other nations, she set to work at once to make herself
strong enough to dominate them.1

[1 Early Diplomatic Relations, Treat.]

{p. 11} The dream of Hideyoshi had not been forgotten, nor had there
been any weakening of the theory of divine overlordship of the emperor
even during the period when he was a powerless recluse at Kyoto and the
country was ruled by the war lords. Circumstances had shown that it was
indiscreet and impractical to demand from the world the obeisance which
was, in theory, due to him. Instead Japan had attempted to follow a policy
of isolation, but now that this isolation had been broken down, Japan could
accept intercourse with the rest of the world only with the thought that
this might be used as a means of placing the emperor in the position in
which he rightfully belonged. A little reflection shows that Japan could
not accept any other theory of world relationship without doing violence
to her idea of an emperor who was an omnipotent god. To admit that his
divine rule extended only to Japan would be a denial of his omnipotence
and the whole theory on which Japan was governed would fall to the ground.

The treaty which Townsend Harris negotiated brought this issue squarely
before the Japanese. To accept the treaty as something which had been forced
on them by a foreign country would be an admission of the impotence of
their emperor. But to sign the treaty as a means of promoting the country's
great imperial ambitions was quite a different matter and it was this point
of view which was taken by the Japanese statesmen.

Lord Hotta, the prime minister, who submitted the text of the Townsend
Harris Treaty to the emperor for his approval, defined the idea with great
precision. In a memorial he wrote:

"Among the rulers of the world at present, there is none so noble
and illustrious as to command universal vassalage, or who can make his
virtuous influence felt throughout the length and breadth of the whole
world. To have such a ruler over the whole world is doubtless in conformity
with the will of Heaven...."

{p. 12} " ... and in establishing relations~ with foreign countries,
the object should always be kept in view of laying a foundation for securing
the hegemony over all nations."

The first step, he pointed out, was to renovate and regulate the domestic
affairs of Japan and establish relations with all other foreign countries.
When this had been accomplished the next thing to do was to form alliances
with other nations; that is to

"join hands with nations whose principles may be found identical
with those of our country. " An alliance thus formed should also be
directed toward protecting harmless but powerless nations. Such a policy
could be nothing else but the enforcement of the power and authority deputed
(to us) by the Spirit of Heaven. Our national prestige and position thus
insured, the nations of the world will come to look up to our Emperor as
the Great Ruler of all nations, and they will come to follow our policy
and submit themselves to our judgement."

Lord Hotta was not the only Japanese who believed in the divine right
of Japan to conquer and rule other countries. Professor W. W. McLaren states
that:

"Expansion and aggrandizement of the Empire had formed an integral
part of the teachings of the loyalist schools before the Restorafion. Yoshida
Shoin, the ~hoshiu patriot, had published a book in which he had predicted,
as a consequence of the restoration of the Emperor, the conquest of Formosa,
the Kurile Island, Kamchatka, Korea and a large portion of Manchuria and
Siberia."1

Tyler Dennett, referring to the memorial of Lord Hotta, says:

"This same idea appears at regular intervals in the literature
of Japan throughout the remainder of the nineteenth century. There is nothing
comparable to it in the utterances of contemporaneous Chinese statesmen."1

{p. 13} The first serious disturbance of Japanese plans for the domination
of the Pacific came in 1898 with the American annexation of Hawaii. Even
at that time Japanese immigrants were going to Hawaii in large numbers
and had it not been for the American annexation there can be no doubt but
that the young and struggling Republic of Hawaii would sooner or later
have fallen under the domination of Japan. Japanese immigrants were settling
there so ranidly that thev would soon have outnumbered all other inhabitants.
More than 60,000 Japanese had come to Hawaii up to the time of annexation
- 20,000 having arrived in the year before. Annexation came at a time when
a wave of enthusiasm for further expansion was sweeping over Japan as a
result of the successful conclusion of the war with China, and the annexation
of Formosa. Japanese believed that it was only ~ question of time until
Hawaii would become a Japanese possession and they looked on annexation
by America as a definite interference with their programme of expansion
- an interference which they resented very bitterly. To quote from Tyler
Dennett:1

"The Japanese government through United States Minister Buck at
Tokio, and even more energetically through the Japanese Minister, Hoshi
Toru, at Washington, entered a vigorous protest - probably the most vigorous
protest that up to that time had ever been issued by Japan to another power.
This protest was doubly significant because it enlarged the question which
might have been supposed to concern Japan. Not only did Japan protest that
the annexation of the islands would endanger the settlement of Japanese
claims over the immigration question then pending, and the general rights
of Japanese in the islands under the treaties between Japan and Hawaii,
but also that the annexation would 'disturb the status quo in the Pacific.'"

{p. 14} protest. While the matter was under discussion Japan encountered
new troubles in Korea and that part of the protest referring to the disturbance
of the status quo was informally withdrawn. The remainder of the protest
still stands.

In the years that have elapsed since Lord's Hotta's memorial, a hundred
Japanese patriots have expressed the same idea: expansion, control of Asia
and eventually domination of the world. This has been the view held by
the fanatical militarists who have denounced as traitors all who disagreed
with them and have not hesitated to assassinate those who stood in the
way of their programme. Every Japanese liberal statesman who planned to
promote the welfare of his country by peaceful means and sought to avoid
war has been the object of murderous attacks and many have been killed.

With the taking of Formosa, the foothold in Manchuria and Siberia which
was provided by the war with Russia, and the annexation of Korea, the dreams
of Hideyoshi and the programme outlined in Lord Hotta's memorial to the
Emperor appeared more and more possible of realization. A bold but unsuccessful
attempt was made to push it forward rapidly and without warfare by the
presentation of the famous Twenty-One Demands on China.

Although the terms of the Anglo-Japanese Alliance clearly pledged Japan
to go to war against Germany on the side of England, the Tokyo government
hesitated and did not take action for a week after hostilities started.
It was later disclosed that this time had been spent in driving a hard
bargain with Great Britain. The latter was compelled to agree to support
Japan's claims at the peace conference for the possession of the German
colony of Tsingtau and of the German islands in the South Pacific.

Less than a year after the war started Japan thought the time was opportune
to gain control over China. Great

{p. 15} Britain was sorely pressed by the Central Powers and our own
government was making desperate attempts to avoid being drawn into the
war. The Manchu government of China had been Qverthrown only a few years
before this and the so-called~Republican government was struggling against
internal dissension. If the demands presented by the Japanese had been
accepted China would at once have become, in effect, a Japanese colony.
Strict secrecy regarding the demands was enjoined on China, but they became
public. Both Great Britain and the United States brought pressure to bear
on Japan and the demands were not pressed.

In 1922 Japan signed the Nine PowerTreatyguaranteeing - the territorial
and administrative integrity of China and apparently had abandoned her
ideas of expansion by force of arms. But while the Japanese diplomats had
signed this treaty which, if it had been observed, would have done much
to ensure the peace of the world, the Japanese war lords continued to speculate
on Hideyoshi's dream and to make plans for its accomplishment.

It was not until the chance disclosure and publication of the famous
memorial which Baron Tanaka presented to the Emperor that the attention
of the world was drawn to these grandiose Japanese dreams. Baron Tanaka,
who had become premier as the leader of the aggressive military party,
sent his memorial to the Emperor on July 25, 1927. It had been prepared
following a conference in Mukden which was attended by all the civil and
military officials of Manchuria and Mongolia and for eleven days they discussed
Japanese policies in these two countries. Some months later the memorial
was published by Chinese publicists with the explanation that a copy had
come into their hands. Though its contents caused a great deal of surprise
to those who were unfamiliar with the history of the Far East, it did not
contain anything that had not been

{p. 16} contained in Hideyoshi's letter, in Lord Hotta's memorial to
the Emperor, or in the writings or speeches of dozens of other Japanese
patriots and statesmen over a period of three centuries.

Japanese have officially denied the existence of this memorial though
its existence is hinted at in a magazine article by Fusanosuka Kuhara,
who was Minister of Communications at the time of the conference in Manchuria.

There is no doubt that the conference was held in Manchuria at the time
stated and that its purpose was to draw up a programme of policy for Japan
to follow in China and especially in Manchuria and Mongolia. It would have
been a most extraordinary thing for a conference of that sort to be held
without embodying the results in a report of some sort, and, as he was
the Premier of the country, it was the duty of Baron Tanaka to present
this report to the Emperor. The fact that the conference was participated
in by such a large number of officials, many of whom had Chinese servants
and clerks, made the task of espionage comparatively easy and it is not
at all improbable that a copy of the report fell into Chinese hands.

But the credibility of the report need not rest on any of these circumstances,
nor be weakened by Japanese official denials. It does not contain a word
which does not fit in with the well-known ideas and policies of Baron Tanaka
and the group of militarists of whom he was the leader. Furthermore, there
has not been an official action of Japan in China for the past ten years
which has not followed the lines laid out in the memorial. If the memorial
was never written and never presented to the Emperor, then it is a very
curious and unaccountable circumstance that it should form the basis for
Japanese policy.

The memorial follows:

{p. 17} Memorial Presented to the Emperor of Japan on July 25, 1927,
by Premier Tanaka, Outlining the Positive Policy in Manchuria.

SINCE the European War, Japan's political as well as economic interests
have been in an unsettled condition. This is due to the fact that we have
failed to take advantage of our special privileges in Manchuria and Mongolia
and fully to realize our acquired rights. But upon my appointment as
premier, I was instructed to guard our interests in this region and watch
for opportunities for further expansion. Such injunctions one cannot
take lightly. Ever since I advacated a positive policy toward Manchuria
and Mongolia as a common citizen, I have longed for its realization. So
in order that we may lay plans for the colonization of the Far East
and the development of our new continental empire, a special conference
was held from June 27th to July 7th lasting in all eleven days. It
was attended by all the civil and military officers connected with Manchuria
and Mongolia, whose discussions result in the following resolutions. These
we respectfully submit to Your Majesty for consideration.

General Considerations

The term Manchuria and Mongolia includes the provinces Fengtien,
Kirin, Heilungkiang and Outer and Inner Mongolia. It extends an area of
74,000 square miles, having a population of 28,000,000 people. The territory
is more

{p. 18} than three times as large as our own empire not counting Korea
and Formosa, but it is inhabited by only one-third as many people. The
attractiveness of the lands does not arise from the scarcity of population
alone; its wealth of forestry, minerals and agricultural products is
also unrivalled elsewhere in the world. In order to exploit these
resources for the perpetuation of our national glory, we created
especially the South Manchuria Railway Company.

The total investment involved in our undertakings in railway, shipping,
mining, forestry, steel manufacture, agriculture, and in cattle raising,
as schemes pretending to be mutually beneficial to China and Japan, amount
to no less than Yen 440,000,000.1 It is veritably the largest single investment
and the strongest organization of our country. Although nominally the
enterprise is under the joint ownership of the government and the people,
in reality the governmtent has complete power and authority. In so
far as the South Manchuria Railway is empowered to undertake diplomatic,
police, and ordinary administrative functions so that it may carry out
our imperialistic policies, the Company forms a peculiar organization
which has exactly the same powers as the Governor-General of Korea.
This fact alone is sufficient to indicate the immense interests we have
in Manchuria and Mongolia. Consequently the policies toward this country
of successive administrations since Meiji are all based on his injunctions,
elaborating and continuously completing the development of the new continental
empire in order to further the advance of our national glory and prosperity
for countless generations to come.

Unfortunately, since the European War there have been constant changes
in diplomatic as well as domestic affairs. The authorities of the Three
Eastern Provinces2 are also

[ 1 The Japanese yen at that time was worth approximately fifty cents
U.S. currency

2 The territory commonly known as Manchuria is usually referred to
in Japan and China as the three Eastern provinces.]

{p. 19} awakened and gradually work toward reconstruction and industrial
development following our example. Their progress is astonishing. It has
affected the spread of our influence in a most serious way, and has put
us to so many disadvantages that the dealings with Manchuria and Mongolia
of successive governments have resulted in failure. Furthermore, the restrictions
of the Nine Power Treaty signed at the Washington Conference have reduced
our special rights and privileges in Manchuria and Mongolia to such an
extent that there is no freedom left for us. The very existence of our
country is endangered.

Unless these obstacles are removed, our national existence will be insecure
and our national strength will not develop. Moreover, the resources of
wealth are congregated in North Manchuria. If we do not have the right
of way here, it is obvious that we shall not be able to tap the riches
of this country. Even the resources of South Manchuria which we won by
the Russo-Japanese War will also be greatly restricted by the Nine Power
Treaty. The result is that while our people cannot migrate into Manchuria
as they please, the Chinese are flowing in as a flood. Hordes of them move
into the Three Eastern Provinces every year, numbering in the neighbourhood
of several millions. They have jeopardized our acquired rights in Manchuria
and Mongolia to such an extent that our annual surplus population of eight
hundred thousand have no place to seek refuge. In view of this we have
to admit our failure in trying to effect a balance between our population
and food supply. If we do not devise plans to check the influx of Chinese
immigrants immediately, in five years' time the number of Chinese will
exceed 6,000,000. Then we shall be confronted with greater difficulties
in Manchuria and Mongolia.

It will be recalled that when the Nine Power Treaty was signed which
restricted our movements in Manchuria

{p. 20} and Mongolia, public opinion was greatly aroused. The late Emperor
Taisho called a conference of Yamagata and other high officers of the army
and navy to find a way to counteract this new engagement. I was sent to
Europe and America to ascertain secretly the attitude of the important
statesmen toward it. They were all agreed that the Nine Power Treaty was
initiated by the United States. The other Powers which signed it were willing
to see our influence increase in Manchuria and Mongolia in order that we
may protect the interests of international trade and investments. This
attitude I found out personally from the political leaders of England,
France and Italy. The sincerity of these expressions could be depended
upon.

Unfortunately just as we were ready to carry out our policy and declare
void the Nine Power Treaty with the approval of those whom I met on my
trip, the Seiyukai cabinet suddenly fell and our policy failed of fruition.
It was indeed a great pity. After I had secretly exchanged views with the
Powers regarding the development of Manchuria and Mongolia, I returned
by way of Shanghai. At the wharf there a Chinese attempted to take my life.
An American woman was hurt, but I escaped by the divine protection of my
emperors of the past. It seems that it was by divine will that I should
assist Your Majesty to open a new era in the Far East and to develop the
new continental empire.

The Three Eastern Provinces are politically the imperfect spot in the
Far East. For the sake of self-protection as well as the protection of
others, Japan cannot remove the difficulties in Eastern Asia unless
she adopts a policy of Blood and Iron. But in carrying out this policy
we have to face the United States which has been turned against us by China's
policy of fighting poison with poison. In the future if we want to control
China, we must first crush the United States just as in the past we had
to fight in the Russo-Japanese

{p. 21} War. But in order to conquer China we must first conquer
Manchuria and Mongolia. In order to conquer the world, we must first
conquer China. If we succeed in conquering China the rest of the
Asiatic countries and the South Sea countries will fear us and surrender
to us. Then the world will realize that Eastern Asia is ours and will
not dare to violate our rights. This is the plan left to us by Emperor
Meiji,1 the success of which is essential to our national existence.

The Nine Power Treaty is entirely an expression of the spirit of commercial
rivalry. It was the intention of England and America to crush our influence
in China with their power of wealth. The proposed reduction of armaments
is nothing but a means to limit our military strength, making it impossible
for us to conquer the vast territory of China. On the other hand, China's
sources of wealth will be entirely at their disposal. It is merely a scheme
by which England and America may defeat our plans. And yet the Minseito2
made the Nine Power Treaty the important thing and emphasized our TRADE
rather than our RIGHTS in China.

This is a mistaken policy - a policy of national suicide. England
can afford to talk about trade relations only because she has India and
Australia to supply her with foodstuffs and other materials. So can America
because South America and Canada are there to supply her needs. Their
spare energy could be entirely devoted to developing trade in China to
enrich themselves. But in Japan her food supply and raw materials decrease
in proportion to her population.

[ 1 Meiji was the first emperor of Japan actually to rule the country
after the downfall of the Shogunate which followed the signing of treaties
with foreign powers. During his long reign, from 1868 to 1912, most of
the reforrns of Japan were effected and the country emerged from its isolated
position and became a world power.

2 Minseito was the name of a liberal party which was in power in Japan
at the time the Washington Conference was held.]

{p. 22} If we merely hope to develop trade, we shall eventually be defeated
by England and America, who possess unsurpassable capitalistic power. In
the end, we shall get nothing. A more dangerous factor is the fact that
the people of China might some day wake up. Even during these years
of internal strife, they can still toil patiently, and try to imitate and
displace our goods so as to impair the development of our trade. When we
remember that the Chinese are our principal customers, we must beware
lest one day when China becomes unified and her industries become prosperous,
Americans and Europeans will compete with us; our trade in China will be
wrecked. Minseito's proposal to uphold the Nine Power Treaty and to adopt
the policy of trade toward Manchuria is nothing less than a suicide policy.

[Baron Tanaka's proposal to denounce the Nine Power Treaty was not actually
carried into effect. The Japanese military authorities merely ignored the
treaty and by carrying on a war without a declaration of war, have been
able to present a number of specious and contradictory arguments. Some
Japanese officials have insisted that the treaty was not violated, others
that it was a dead letter. In the meantime the treaty has not been denounced,
although all of its provisions have been violated.]

After studying the present conditions and possibilities of our country,
our best policy lies in the direction of taking positive steps to secure
rights and privileges in Manchuria and Mongolia. These will enable us to
develop our trade. This will not only forestall China's own industrial
development, but also prevent the penetration of European Powers. This
is the best policy possible!

The way to gain actual rights in Manchuria and Mongolia is to use
this region as a base and under the pretence of trade and commerce penetrate
the rest of China. Armed by the rights already secured we shall seize
the resources all over

{p. 23} the country. Having China's entire resources at our disposal
we shall proceed to conquer India, the Archipelago, Asia Minor, Central
Asia, and even Europe. But to get control of Manchuria and Mongolia
is the first step if the Yamato race wish to distinguish themselves on
Continental Asia.

Final success belongs to the country having food supply; industrial
prosperity belongs to the country having raw materials; the full growth
of national strength belongs to the country having extensive territory.
If we pursue a positive policy to enlarge our rights in Manchuria and China,
all these prerequisites of a powerful nation will constitute no problem.
Furthermore our surplus population of 700,000 each year will also be taken
care of.

If we want to inaugurate a new policy and secure the permanent prosperity
of our empire, a positive policy toward Manchuria and Mongolia is the only
way.

Manchuria and Mongolia Not Chinese Territory

Historically considered, Manchuria and Mongolia are neither China's
territory nor her special possessions. Dr. Yano has made an extensive study
of Chinese history and has come to the positive conclusion that Manchuria
and Mongolia never were Chinese territory. This fact was announced to the
world on the authority of the Imperial University. The accuracy of Dr.
Yano's investigations is such that no scholars in China have contested
his statement. However, the most unfortunate thing is that in our declaration
of war with Russia our government openly recognized China's sovereignty
over these regions and later again at the Washington Conference when we
signed the Nine Power Treaty.

Because of these two miscalculations (on our part) China's sovereignty
in Manchuria and Mongolia is estab-

{p. 24} lished in diplomatic relations, but our interests are seriously
injured. In the past, although China speaks of the Republic of Five
Races, yet Thibet, Sinkiang, Mongolia and Manchuria have always remained
special areas and the princes are permitted to discharge their customary
functions. Therefore in reality the sovereign power over these regions
resides with the princes. When the opportunity presents itseif we should
make known to the world the actual situation there. We should also wedge
our way into Outer and Tnner Mongolia in order that we may reform the mainland.
So long as the princes there maintain their former administrations, the
sovereign rights are clearly in their hands. If we want to enter these
territories, we may regard them as the ruling power and negotiate with
them for rights and privileges. We shall be afforded excellent opportunities
and our national infiuence will increase rapidly.

Positive Policy in Manchuria

As to the rights in Manchuria, we should take forceful steps on the
basis of the Twenty-One Demands and secure the following in order to safeguard
the enjoyment of the rights which we have acquired so far:

1. After the thirty-year commercial lease terminates, we should be able
to extend the term at our wish. Also the right of leasing land for commercial,
industrial and agricultural purposes should be recognized.

2. Japanese subjects shall have the right to travel and reside in the
eastern part of Mongolia, and engage in commercial and industrial activities.
As to their movements, China shall allow them freedom from Chinese law.
Furthermore, they must not be subject to illegal taxation and unlawful
examination.

{p. 25} 3. We must have the right of exploiting the nineteen iron and
coal mines in Fengtien and Kirin, as well as the right of timbering.

4. We should have priority for building railroads and option for loans
for such purposes in South Manchuria and Eastern Mongolia.

5. The number of Japanese political, financial and military advisers
and training officers must be increased. Furthermore, we must have priority
in furnishing new advisers.

6. The right of stationing our police over the Koreans (in China).

7. The administration and development of the KirinChangchun Railway
must be extended to 99 years.

8. Exclusive right of sale of special products - priority of shipping
business to Europe and America.

9. Exclusive rights of mining in Heilungkiang.

I 0. Right to construct Kirin-Hueining and Changchun-Talai Railways.

11. In case money is needed for the redemption of the Chinese Eastern
Railway, the Japanese Government must have the first option for making
!oans to China.

12. Harbour rights at Antung and Yingko and the right of through transportation.

13. The right of partnership in establishing a Central Bank of the Three
Eastern Provinces.

14. Right of Pasturage.

[Of the fourteen "rights" listed above, all are now being
enjoyed by Japanese not only in Manchuria but in all of the Japanese-occupied
portion of China.]

{p. 26} Positive Policy Toward Inner end Outer Mongolia

Since Manchuria and Mongolia are still in the hands of the former
princes, in the future we must recognize them as the ruling power and give
them support. For this reason, the daughter of General Fukushima, Governor
of Kwantung, risked her life among the barbarous Mongolian people of Tushiyeh
to become adviser to their Prince in order that she might serve the Imperial
Government. As the wife of the Prince Ruler is the niece of Manchu Prince
Su, the relationship between our Government and the Mongolian Prince became
very intimate. The princes of Outer and Inner Mongolia have all shown sincere
respect for us, especially after we allured them with special benefits
and protection. Now there are 19 Japanese retired military officers in
the house of the Tushiyeh.

We have acquired already monopoly rights for the purchase of wool,
for real estate and for mines. Hereafter we shall send secretly more
retired officers to live among them. They should wear Chinese clothes
in order to escape the attention of the Mukden Government. Scattered
in the territory of the Prince, they may engage themselves in farming,
herding or dealing in wool. As to the other principalities, we can employ
the same method as in Tushiyeh.

Everywhere we should station our retired military officers to dominate
in the Princes' affairs. After a large number of our people have moved
into Outer and Inner Mongolia, we shall then buy lands at one-tenth
of their worth and begin to cultivate rice where feasible in order
to relieve our shortage of food supply. Where the land is not suitable
for rice cultivation we should develop it for cattle-raising and horse-breeding
in order to replenish our military needs. The rest of the land could be
devoted to the manufacture

{p. 27} of canned goods which we may export to Europe and America. The
fur and leather will also meet our needs. Once the opportunity comes, Outer
and Inner Mongolia will be ours outright.

While the sovereign rights are not clearly defined and while the Chinese
and Soviet Governments are engaging their attention elsewhere, it is our
opportunity to build our influence. Once we have purchased most of the
land there, there will be no room for dispute as to whether Mongolia belongs
to the Japanese or the Mongolians. Aided by our military prowess, we
shall realize our positive policy. In order to carry out this plan, we
should appropriate Yen 1,000,000 from the secret funds of the Army Department's
budget so that four hundred retired officers disguised as teachers and
Chinese citizens may be sent into Outer and Inner Mongolia to mix with
the people, to gain the confidence of the Mongolian princes, to acquire
from them rights for pasturage and mining and to lay the foundation of
our national interests for the next hundred years.

Encouragement and Protection of Korean Immigration

Since the annexation of Korea, we have had very little trouble. But
President Wilson's declaration of the self-determination of races after
the European War has been like a divine revelation to the suppressed peoples.
The Koreans are no exception. The spirit of unrest has permeated the whole
country. Both because of the freedom they enjoy in Manchuria due to the
incompetent police system and because of the richness of the country, there
are now in the Three Eastern Provinces no fewer than 1,000,000 Koreans.

The unlooked-for development is fortunate for our country indeed. From
a military and economic standpoint, it has greatly strengthened our influence.
From another

{p. 28} standpoint, it gives new hope for the administration of Koreans.
They will both be the vanguard for the colonization of virgin fields and
furnish a link of contact with the Chinese people. On the one hand, we
could utilize the naturalized Koreans to purchase land for rice cultivation;
on the other, we could extend to them financial aid through the Co-operative
Society, the South Manchuria Railway, etc., so that they may serve as the
spear-head of our economic penetration. This will give relief to our problem
of food supply, as well as open a new field of opportunity for colonization.

The Koreans who have become naturalized Chinese are Chinese only
in name; they will return to our fold eventually. They are different from
those naturalized Japanese in California and South America. They are
naturalized as Chinese only for temporary convenience. When their numbers
reach two and a half million or more, they can be instigated to military
activities whenever there is the necessity, and under the pretence of suppressing
the Koreans we could bear them aid. As not all the Koreans are naturalized
Chinese, the world will not be able to tell whether it is the Chinese Koreans
or the Japanese Koreans who create the trouble. We can always sell
dog's meat with a sheep's head as a signboard.

Of course while we could use the Koreans for such purposes, we must
beware of the fact that the Chinese could also use them against us. But
Manchuria is as much under our jurisdiction as under Chinese jurisdiction.
If the Chinese should use Koreans to hamper us, then our opportunity of
war against China is at hand. In that event, the most formidable factor
is Soviet Russia. If the Chinese should use the "Reds" to influence
the Koreans, the thought of our people will change and great peril will
befall us. Therefore, the present Cabinet is taking every precaution against
this eventuality.

{p. 29} If we want to make use of the Koreans to develop our new
continental empire, our protection and regulations for them must be
more carefully worked out. We should increase our police force in North
Manchuria under the terms of the Mitsuya Treaty so that we may protect
the Koreans and give them help in their rapid advance. Furthermore, the
Eastern Development Company (Totuku Kaisha) and the South Manchuria Railway
Company should follow then to give them financial aid. They should be given
especially favourable terms so that through them we may develop Manchuria
and Mongolia and monopolize the commercial rights.

The influx of Koreans into these territories is of such obvious importance
both for economic and military considerations that the Imperial Government
cannot afford not to give it encouragement. It will mean new opportunities
for our empire. Since the effect of the Lansing-Ishii Agreement is lost
after the Washington Conference, we can only recover our interests through
the favourable development arising out of the presence of several millions
of Koreans in Manchuria. There is no ground in international relations
for raising any objection to this procedure.

Railroaods and Development of Our New Continent

Transportation is the mother of the national defcnce, the assurance
of victory and the citadel of economic development. China has only 7,200
to 7,300 miles of railroads, of which three thousand miles are in Manchuria
and Mongolia, constituting two-fifths of the whole. Considering the size
of Manchuria and Mongolia and the abundance of natural products, there
should be at least five or six thousand miles more. It is a pity that our
railroads are mostly in South Manchuria, which cannot reach the sources
of wealth in

{p. 30} the northern parts. Moreover, there are too many Chinese inhabitants
in South Manchuria to be wholesome for our military and economic plans.
If we wish to develop the natural resources and strengthen our national
defence, we must build railroads in Northern Manchuria. With the opening
of these railroads, we shall be able to send more people (Japanese) into
Northern Manchuria.

From this vantage ground we can manipulate political and economic developments
in South Manchuria, as well as strengthen our national defence in the interest
of peace and order of the Far East. Furthermore, the South Manchuria was
built mainly for economic purposes. It lacks encircling lines necessary
for military mobilization and transportation. From now on we must take
military purposes as our object and build circuit lines to circle the heart
of Manchuria and Mongolia in order that we may hamper China's military,
political and economic developments there on the one hand, and prevent
the penetration of Russian influence on the other. This is the key to our
continental policy.

There are two trunk lines in Manchuria and Mongolia. These are the Chinese
Eastern Railway and the South Manchuria Railway. As regards the railroad
built by the Chinese, it will doubtless become very powerful in time, backed
by the financial resources of the Kirin Provincial Government. With the
combined resources of Fengtien and Heilung-kiang Provinces, the Chinese
railroads will develop to an extent far superior to our South Manchuria
Railway. Strong competition will inevitably result. Fortunately for us,
the financial conditions in Fengtien Province are in great disorder, which
the authorities cannot improve unless we come to their succour. This is
our chance. We should take positive steps until we have reached our goal
in railroad development.

Moreover, if we manipulate the situation, the Fengtien bank

{p. 31} notes will depreciate to an inconceivable degree. In that event,
the bankruptcy of Fengtien will be a matter of time. The development of
Manchuria and Mongolia will be out of the question for them. But we' still
have to reckon with the Chinese Eastern Railway. It forms a T with the
South Manchuria Railway. Although this system is a convenient shape, it
is by no means suitable for military purposes. When the Chinese build railroads
as feeders of the Chinese Eastern Railway, it is best that they run parallel
to it, west and east. But with the South Manchuria Railway as main line,
we must have these lines run north and south. For the benefit of the Chinese
themselves, there are also advantages for these lines to run in this direction.
Consequently our interest does not necessarily conflict with the Chinese.
Now that Russia is losing influence and is powerless to advance in Manchuria
and Mongolia, it is certain that the Chinese must act according to
our reckoning in the development of railways in the future. Much to our
surprise the Fengtien Government recently built two railroads, one from
Tahushan to Tungliao and the other from Kirin to Haining, both for military
purposes. These two rail-roads affect most seriously our military plans
in Manchuria and Mongolia as well as the interest of the South Manchuria
Railway. We therefore protested strongly against it.

That these railways were built was due to the fact that our official
on the spot as well as the South Manchuria Railway authorities miscalculated
the ability of the Fengtien Government and paid no attention to it. Later
when we did intervene the railways were already completed. Besides, the
Americans have been anxious to make an investment in developing the port
of Hu-lu-tao through British capitalists. Taking advantage of this situation,
the Fengtien Government introduced American and British capital in these
railways in order to hold our interest at bay. For the time being we have
to wink at it and wait

{p. 32} for the opportune moment to deal with China about these two
railroads.

Recently, it is rumoured, that the Fengtien Government is planning to
build a railroad from Tahushan to Harbin via Tung Liao and Fu Yu, so that
there may be a direct line between Peking and Harbin without touching either
the South Manchuria Railway or the Chinese Eastern Railway. What is more
astonishing is that another railway beginning at Mukden passing through
Hailung, Kirin, Wuchang and terminating at Harbin is also under way. If
this plan becomes true, then these two lines would encircle the South Manchuria
Railway and limit its sphere of activities to a small area. The result
is that our economic and political development of Manchuria and Mongolia
will be checked and the plan for curtailing our power by the Nine Power
Treaty will be carried out. Moreover, the completion of these two railroads
will render the South Manchuria Railway completely useless. The latter
company will be confronted with a real crisis. But in view of China's financial
conditions to-day, she cannot undertake these two railroads unless she
resorts to foreign loans.

And on these two railways the transportation charges will have to be
higher than on the South Manchuria Railway. These considerations give us
some comfort. But in the event of these two railroads becoming an accomplished
fact and the Chinese Government making especially low freight charges in
order to compete with the South Manchuria Railway, not only we but the
Chinese Eastern Railway will also sustain great losses. Japan and Russia
certainly would not allow China to carry out such obstructive measures,
especially as the Chinese Eastern Railway depends upon Tsitsihar and Harbin
for the bulk of its business. The consequence would be even more serious
to both Japanese and Russian interests when the new railways are completed.

{p. 33} Let us consider more in delail the competitive railways projected
in Manchuria and Mongolia. China contemplates:

1. Suolun-Taonan Railway.

2. Kirin-Harbin Railway.

Soviet Russia proposes:

1. Anta-Potung Railway.

2. Mienpo-Wuchang-Potuna Railway.

3. Kirin-Hailin Railway.

4. Mishan-Muling Railway.

The Russian plans are designed to strengthen the Chinese Eastern Railway
and thereby to extend its imperialistic schemes. For this reason the railways
projected mostly run east and west. For although the power of Soviet
Russia is declining, her ambition in Manchuria and Mongolia has not diminished
for a minute. Every step she takes is intended to obstruct our progress
and to injure the South Manchuria Railway. We must do our utmost to guard
against her influence. We should use the Fengtien Government as a wedge
to check her southern advance. By pretending to check the southern advance
of Soviet Russia as a first step, we could gradually force our way into
North Manchuria and exploit the natural resources there. We shall then
be able to prevent the spread of Chinese infiuence on the south and arrest
the advance of Soviet Russia on the north. In our struggle against the
political and economic infiuence of Soviet Russia, we should drive China
before us and direct the event from behind. Meanwhile, we should still
secretly befriend Russia in order to hamper the growth of Chinese infiuence.
It was largely with this purpose in view that Baron Goto of Kato's cabinet
invited Joffe1 to

[ 1 Joffe was Russian ambassador to China.]

{p. 34} our country and advocated the resumption of diplomatic relations
with Russia.

Although we have an agreement with the Chinese Eastern Railway concerning
transportation rates, according to which 45 per cent go to the Chinese
Eastern Railway and 55 per cent to us, yet the Chinese Eastern Railway
still grants preferential rates detrimental to the interest of the South
Manchuria Railway. Moreover, according to a secret declaration of Soviet
Russia, although they have no territorial ambition they cannot help keeping
a hand in the Chinese Eastern Railway on account of the fact that north
of the Chinese and Russian boundary the severe cold makes a railway valueless.
Furthermore, as Vladivostok is their only seaport in the Far East, they
cannot give up the Chinese Eastern Railway without losing also their foothold
on the Pacific. This makes us feel the more uneasy.

On the other hand the South Manchuria Railway is not adequate for our
purpose. Considering our present needs and future activities, we must control
railways in both north and south Manchuria, especially in view of the fact
that the resources of North Manchuria and Eastern Mongolia will furnish
no room for expansion and material gains. In South Manchuria the Chinese
are increasing at such a rate that it surely will damage our interests
politically and economically. Under such circumstances, we are compelled
to take aggressive steps in North Manchuria in order to assure our future
prosperity. But if the Chinese Eastern Railway of Soviet Russia should
spread across this field our new continental policy is bound to receive
a set-back which will result in an inevitable conflict with Soviet Russia
in the near future. In that event we shall enact once more our part in
the Russo-Japanese War. The Chinese Eastern Railway will become ours as
the South Manchuria Railway did last time, and we shall seize Kirin as
we once did Dairen. That we should draw swords with Russia again in the
fields

{p. 35} of Mongolia in order to gain the wealth of North Manchuria seems
a necessary step in our programme of national aggrandizement. Until this
hidden rock is blown up our ship cannot have smooth sailing. We should
now demand from China the right of building all the important military
railroads. When these railroads are completed, we shall pour our forces
into North Manchuria as far as we can. When Soviet Russia intervenes, as
they must, that is our opportunity for open conflict.

We should insist on the building of the following railways:

1. Tungliao-Jehol Railway. This line is 447 miles long and will cost
Yen so,000,000. When it is completed it will be of great value to our development
of Inner Mongolia. As a matter of fact, this is the most important of all
the railways in the whole undertaking. According to the careful surveys
of the War Department, there are in Inner Mongolia large tracts of land
suitable for rice cultivation. After proper development there will
be room for at least 20 millions of our people. There is besides the possibility
of turning out 2,000,000 head of cattle which may be transported by railways
for food supply and for purposes of exporting to Europe and America. Wool
also is a special product. While the sheep in Japan yield only two catties1
of wool per head per year, the sheep in Mongolia can yield six catties.
The South Manchuria Railway has made many experiments, all of which confirm
this fact. Besides, the wool is many times better than that of Australia.
Its low cost and high quality combined with its abundance in quantity make
Mongolia a potential source of great wealth. When this industry is enhanced
by the facilities of railway development, the total production will increase
at least ten-fold.

We have withheld this knowledge from the rest of the

[ 1 A catty is a weight of 1 1/2 lbs.]

{p. 36} world, lest England and America compete with us for it. Therefore,
we must first of all control the transportation and then develop the wool
industry. By the time the other countries know about it, it would be
already too late to do anything. With this railroad in our hands, we can
develop the wool industry not only for our own use, but also for exporting
to Europe and America. Furthermore, we can realize our desire of joining
hands with Mongolia. This railway is a matter of life and death to our
policy in Mongolia. Without it, Japan can have no part in Mongolia's development.

2. Suolun-Taonan Railway. This line is 136 miles long and will cost
Yen 10~000,000. Looking into the future of Japan, a war with Russia over
the plains of North Manchuria is inevitable. From a military standpoint,
this line will not only enable us to threaten Russia's rear, but also to
curtail its reinforcements for North Manchuria. From an economic standpoint,
this road will place the wealth of the Tao-er-ho Valley within our reach,
thereby strengthening the South Manchuria Railway. The princes nearby who
are friendly to us can also use this road to extend our influence in order
to open up their respective territories. Our hope of working hand in hand
with the Mongolian princes, of acquiring land, mines and pasturage, and
of developing trade with the natives as preliminary steps for later penetration,
all depend upon this railway. Together with the Tungliao-Jehol Railway,
they will form two supplementary routes into Mongolia.

When the industries are fully developed, we shall extend our interests
into Outer Mongolia. But the danger of this line is that it might provide
facilities for Chinese migration into a new region and spoil our policy.
Look at our experience with the South Manchuria Railway. Hasn't that served
the interest of China? The redeeming feature, however, is the fact that
the land and mines along this rail

{p. 37} way are in the possession of Mongolian princes. If we can gain
possession of them first, we need have no worries about Chinese migration.
Moreover, we can make the princes pass laws discriminating against Chinese
immigrants. When life there is made miserable for the Chinese, they naturally
will leave for places afar. There are other methods to bar the Chinese.
Only if we try hard enough, no Chinese foot-prints will be found on Mongolian
territory.

3. A section of the Changchun-Taonan Railway. As this line runs from
Changchun to Fuyu and Talai, the section between Changchun and Taonan is
about 131 miles and costs approximately Yen I l,000,000. This line is immensely
important from an economic standpoint, for the wealth of Manchuria and
Mongolia lies all in North Manchuria. It will enable us to have an easy
access to North Manchuria on the one hand, and prejudice the Chinese Eastern
Railway to the benefit of the South Manchuria Railway on the other. It
runs through the upper valley of the Sungari River where the soil is fertile
and agricultural products abound. Further, in the vicinity of Talai there
is the Yueh-Liang Falls which could be harnessed for electric power. That
this section of the railway will be a prosperous centre for industry and
agriculture is beyond doubt. After the completion of this line, we shall
be able to make Talai a base and advancc on Siberia through three directions;
namely, by way of Taonan, Anshan and Tsitsihar. The wealth of North Manchuria
will then come to our hands. This will also be the first line of advance
to Heilungkiang. It will further form a circuit with the railway between
Changchun and Taonan, which will serve well for military purposes when
we penetrate into Mongolia.

Along this whole line the population is sparse and the land is rich
and extensive. No fertilizer will be required on the farms for fifty years.
A possession of this railway will ensure the possession of all the wealth
of North Manchuria

{p. 38} and Mongolia. In this region there is room for at least 30 million
people more. When the Tunhua Railway is completed and joins up with the
line running to Hueining in Korea, the products will be brought to the
door of Osaka and Tokyo by a direct route. In time of war our troops
could be dispatched to North Manchuria and Mongolia via the Japan Sea without
a stop, forestalling all possibilities of Chinese forces entering North
Manchuria. Nor could American or Russian submarines enter the Korean Strait.
The moment the railways between Kirin and Hueining and between Changchun
and Talai are completed, we shall become self-sufficient in food-stuffs
and raw materials. We shall have no worries in the event of war with any
country. Then, in our negotiation with Manchuria and Mongolia, China will
be cowed to submission and yield to our wishes. If we want to end the political
existence of Manchuria and Mongolia according to the third step of Meiji's
plan, the completion of these two railways is the only way. The Changchun-Talai
Railway will greatly enhance the value of the South Manchuria Railway,
besides developing into a profitable line itself. It is an undertaking
of supreme importance in our penetration into this territory.

4. The Kirin-Hueining Line. While the Kirin-Tunhua Line is already completed,
the Tunhua-Hueining Line is yet to be built. The narrow gauge of 2 ft.
6 inches of the track from Hueining to Laotoukow is inadequate for the
economic development of the New Continent. Allowing Yen 8,000,000 for widening
the tracks in this section and Yen 10,000,000 for completing the section
between Laotoukow and Tunhua, the whole undertaking will cost approximately
Yen 20,000,000. When this is done, our continental policy will have succeeded.
Hitherto, people going to Europe have to pass through either Dairen or
Vladivostok. Now they can go on the trunk line directly from Chingchinkwang
via the Siberian Railway. When we are in

{p. 39} control of this great system of transportation, we need make
no secret of our designs on Manchuria or Mongolia according to the third
step of Meiji's plans. The Yamato Race is then embarked on;the journey
of world conquest! According to the last will of Meiji, our first step
was to conquer Formosa and the second step to annex Korea. Having completed
both of these, the third step is yet to be taken and that is the conquest
of Manchuria, Mongolia and China. When this is done, the rest of Asia including
the South Sea Islands will be at our feet. That these injunctions have
not been carried out even now, is a crime of your humble servants.

In history the people living in Kirin, Fengtien and part of Heilungkiang,
are called Sushan. They are now scattered along the sea coast and in the
basins of the Amur and Tumen rivers. They were known as Kulai, Sushan,
Hueibei, Palou, Wotsu, Fuyu, Kitan, Pohai and Nuchen at different stages
of history. They were of a mixed race. The forefathers of the Manchurian
dynasty also began in this vicinity. They gained control of Kirin, first,
and then firmly established themselves in China for 300 years. If we want
to put into effect our Continental Policy, we have to note this historical
fact and proceed to establish ourselves in this region first also. Hence
the necessity of the Kirin-Hueining Railway.

Whether the terminus of the Kirin-Hueining Line be at Chingchu or Lochin
or even Hsiungchi, we are free to decide according to circumstances. From
the standpoint of national defence at present Lochin seems the ideal harbour
and terminus. Eventually it will be the best harbour in the world. On the
one hand it will ruin Vladivostok, and on the other it will be the centre
of the wealth of Manchuria and Mongolia. Moreover, Dairen is as yet not
our own territory. While Manchuria is yet not a part of our empire, it
is difficult to develop Dairen. That being the case, we shall

{p. 40} be in a precarious situation in time of war. The enemy could
blockade the Tsushima and Senchima straits, and we would be cut off from
the supplies of Manchuria and Mongolia. Not having the resources there
at our command we would be vanquished, especially as England and the United
States have worked hand in hand to limit our action in every possible direction.

For the sake of self-preservation and of giving warning to China and
the rest of the world, we must fight America some time. The American
Asiatic Squadron stationed in the Philippines is but within a stone's throw
from Tsushima and Senchima. If they send submarines to these quarters,
our supply of food-stuffs and raw materials from Manchuria and Mongolia
will be cut off entirely. But if the Kirin-Hueining Railway is completed,
we shall have a large circuit line through all Manchuria and Korea, and
a small circuit line through North Manchuria. We shall have access in all
directions gaining freedom for the transportation of soldiers and supplies
alike. When our supplies are transported through this line to our ports
at Tsuruga and Niigata, enemy submarines will have no way of getting into
the Japanese and Korean straits. We are then entirely free from interference.
This is what is meant by making the Japanese Sea the centre of our national
defence.

Having secured the free transportation of food and raw materials, we
shall have nothing to fear either from the American navy because of its
size, or the Chinese or Russian army because of their number. Incidentally,
we shall be in a position to suppress the Koreans. Let me reiterate the
fact that if we want to carry out the New Continental Policy, we must build
this line. Manchuria and Mongolia are the undeveloped countries in the
East. Over this territory we shall have to go to war with Soviet Russia
sooner or later. The battle ground will be in Kirin.

When we carry out the third step of Meiji's plans with

{p. 41} regard to China, we shall have to do the following things:

1. Mobilize the army divisions in Fukuoka and Hiroshima, and send them
to South Manchuria via Korea. This will prevent the northern advance of
Chinese soldiers.

2. Send the army divisions in Nagoya and Kwansei by sea to Ghingchin,
and thence to North Manchuria via the Kirin-Hueining Line.

3. Send the army in Kwantung through Niigata to Chingchin or Lochin,
and thence by Kirin-Hueining Line to North Manchuria.

4. Send the army divisions in Hokkaido and Sendai to embark the ship
at Aomori and Hakodato, and sail for Vladivostok; thence via the Siberian
Railway to Harbin. Then they can descend on Fengtien, seize Mongolia and
prevent Russian forces from coming south.

5. Finally these divisions in all directions will meet and form themselves
into two large armies. On the south, they will keep Shanhaikwan and close
it against the northern advance of Chinese forces; on the north, they will
defend Tsitsihar against the southern advance of the Russians. In this
way we shall have all the resources of Manchuria and Mongolia at our command.
Even if the war should be prolonged for ten years, we need have no fear
for the lack of supplies.

Let us now analyse once more the Kirin-Hueining Railway from the standpoint
of its access from our ports. First with Chingchin as the starting point:

1. To Vladivostok - 130 miles.

2. To Tsuruga - 475 miles.

3. To Moji - 500 miles.

4. To Nagasaki - 650 miles.

5. To Fushun - 500 miles.

{p. 42} Second, take Tsuruga as the port of entry and compare it with
Dairen. In this case we should consider it from the point of view of Osaka
as industrial centre.

1. From Changchun to Osaka via Lochin, the distance is 406 miles by
land and 475 miles by sea. In point of time the route will take 51 hours.

2. From Changchun to Osaka via Dairen and Kobe, the distance is 535
miles by land and 870 miles by sea. In point of time it takes 92 hours.

If Tsuruga instead of Dairen is made the connecting link, there is a
saving of 4I hours. Calculated at the rate of 30 miles an hour on land
and I 2 miles an hour by sea, we can use fast boats and trains and cut
the time in half.

Manchuria and Mongolia are the Belgium ~f the Far East. In the Great
War, Belgium was the battlefield. In our wars with Russia and the United
States, we must also make Manchuria and Mongolia suffer the ravages.
As it is evident that we have to violate the neutrality of these territories,
we cannot help building the Kirin-Hueining and Changchun-Talai Railways
in order that we may be militarily prepared. In time of war we can easily
increase our forces and in time of peace we can migrate thousands upon
thousands of people into this region and work on the rice fields. This
line offers the key to economic development as well as to military conquests.

In undertaking the Kirin-Hueining Railway, it is necessary to take advantage
of the dry season and finish it at one stretch. The mountains we must go
through are all granite. The tunnelling would need modern and up-to-date
machines. As to the sleepers and ballast required, there is an abundance
all along the line. Limestone and clay for making tiles and brick are also
to be had for the taking. Only rails, cars and locomotives have to be brought
in. The

{p. 43} cost of construction could therefore be reduced at least 30
per cent and the time required 40 per cent.

Now let us look into the economic interests along this line. According
to the careful investigation of our General Staff and the South Manchuria
Railway, the total reserve of timber is 200,000,000 tons. If one million
tons is felled and imported to our country each year, it will last two
hundred years. This will stop the imports of American timber which has
been costing us Yen 80,000,000 to Yen 100,000,000 a year. Although our
information is reliable we cannot make it known to the world; for if China
or Russia learns that we get so much timber from America, they would try
to interfere with the construction of this line. Or else, the United States
may buy from the Fengtien Government all the timber rights on the one hand
to protect their own trade with us; on the other, to control the monopoly
and incidentally kill our paper industy.

Kirin was known as the "ocean of trees" even in the days of
Emperor Chien-Lung. Added to the original forests are the growths in the
intervening years since that time. Imagine the vastness of the resources!
To transport this timber from Kirin to Osaka via Changchun and Dairen,
there is a distance of 1,385 miles. For every cubic foot, we have to spend
34 cents. Because of this high cost of transportation, we cannot compete
with the United States. If the Kirin-Hueining Line is completed, the distance
is reduced to about 700 miles. We can then ship timber to Osaka at the
low rate of 13 cents per cubic foot. We can certainly defeat the timber
from the United States then. Supposing we calculate the profit at Yen 5.00
per ton of timber and supposing there are two billion tons of timber, the
construction of the railway will bring to us the easy profit of 10 million
yen. Besides, we will bar the import of American timber into our country.
Furthermore, the industry of furniture making, paper manufacture and other
usages

{p. 44} which the cheap timber makes possible will add 20 million yen
more to our country's annual income.

There is also the Hsin Chin coal mine, which has a reserve of 600,000,000
tons of coal. The quality of this coal is superior to that of Fushun coal,
easy to excavate and suitable for the extraction of petroleum, agricultural
fertilizers and other chemical by-products which we may both use at home
and sell in China. There are numerous other advantages which will come
to us from the building of the Kirin-Hueining Railway. It is all gain without
labour. The coal will supplement the Fushun colliers. With both coal mines
in our control, we hold the key to the industries of all China. Speaking
of the Hsin Chin coal, we shall reap a profit of Yen 5.00 on each ton when
it is shipped to Japan. With additional chemical by-products, we shall
reap a profit of Yen 16.00 from each ton of coal. Taking an average profit
of Yen 15.00 a ton, the total profit will amount to 200 billion yen. All
this comes as a by-product from the operation of the Kirin-Hueining Railway.
There are, besides, the gold mines along the Mutan River. The acquired
rights of the South Manchuria Railway in the gold mines of Chia-Pikou in
the province of Kirin and the timber in the neighbourhood will all be within
reach of exploitation once the Kirin-Hueining line is in operation.

In the vicinity of Tunhua, the agricultural products, such as oats,
wheat, millet and Koaliang, yield an annual output of over a million catties.
There are twenty distilleries of wines, thirty oil mills yielding an annual
output of about 600,000 catties of oil and 600,000 of bean cakes, besides
many other places for making vermicelli. All these will depend upon the
new railway. The trade along this road may be estimated at four million
yen a year. The transportation charges of farm products alone will not
only defray the running expenses, but also yield a net profit of Yen 200,000
per year. Including the net profit from timber,

{p. 45} coal and its by-products transported by the railways, we can
safely count on a profit of Yen 8,000,000 a year. Besides, there are indirect
benefits such as strengthening of the South Manchuria Railway, the acquisition
of rights over forests, mines and trade as well as the migration of large
numbers of our people into North Manchuria. Above all, is the shortening
of distance between Japan and the resources of wealth in North Manchuria.
It takes only three hours from Chingchin to Hueining, three hours from
Hueining to Sanfeng and three hours more from Tumen River to Lung-Ching-Tsun.
In 60 hours we can reach the wealth of North Manchuria. Hence the Kirin-Hueining
Railroad alone can enable us to tap the immense wealth of North Manchuria.

4. Hunchun-Hailin Railway. This is 173 miles long and cost Yen 24,000,000.
All along this line are thick forests. In order to strengthen the Kirin-Hueining
Railway and to exploit the forests and mines in North Manchuria, this line
is needed. In order to transfer the prosperity of Vladivostok to Hueining,
this line is also urgently needed. The greatest hope for prosperity, however,
is the fact that south of Naining and north of Tunhua there is Lake Chingpo
which can be used to generate electric power. With this electric power,
we shall have control over the agricultural and industrial undertakings
of the whole of Manchuria and Mongolia. No amount of Chinese agitation
can matter in the least to our industrial developments. According to the
investigations of the South Manchuria Railway, the water power in the lake
can generate at least 800,000 horse-power. With such an enormous quantity
of electric power, the industrial conquest of Manchuria and Mongolia can
be easily accomplished. In the neighbourhood of this immense power plant,
there will be phenomenal growth of wealth. We must build this railway quickly,
in order to provide facilities for transportation. Lake Hsing Kai, which
is owned jointly by

{p. 46} China and Russia, can also be developed for the generation of
electricity. In order that these two countries may not combine to frustrate
our plans, we should introduce a resolution in the International Conference
of Electrical Engineering to be held in Tokyo this year, to the effect
that in the same area of electricity supply there should not be two power
plants. Besides, in the vicinity of Niigata and Hailin, the Oju Paper Mill
has acquired extensive rights of lumbering. They need the immediate establishment
of the power plant at Lake Chingpo and the early completion of the HunchunHailin
Railway in order to bring to the factory at home the raw materials growing
wild in Mongolia.

Moreover, the reason that the Feng-Kirin-Wuchang Railway and the Kirin-tien
authorities intend to build the Wuchang Railway and the Kirin Mukden Railway,
with Hulutao or Tientsin as seaport, is that they want to recover to themselves
the wealth of North Manchuria. By building the Hunchun-Hailin Railway we
shall not only strengthen the Kirin-Hueining Railway, but also defeat the
Chinese scheme and draw the wealth of Manchuria to Chingchin Harbour. The
transportation charges will be two-thirds less compared with the Chinese
line and one-third less compared with the Siberian line. They cannot compete
with us. Our victory is a foregone conclusion.

The total trade in Manchuria is seven or eight billion yen a year, all
of which is in our hands. The business we do in wool, cotton, soy beans,
bean cakes and iron, forms one-twentieth of the total volume of world trade.
And it is steadily increasing. But the Namihaya Machi at Dairen (the wealthiest
street in the city) is still in Chinese possession. The sad story goes
further. Oil is a basic industry in Manchuria. We control only 6 per cent
of it. Of the 38 oil mills in Yingkow there is not one Japanese; of the
20 oil mills in Antung there is only one Japanese and of the 82 or 83 oil
mills in Dairen there are only seven owned by

{p. 47} Japanese. This is by no means an optimistic outlook for us.

In order to recover the lost ground, we must first of all develop
transportation. Then, by securing a monopoly on both finished, products
and raw materials, we shall be able to gain the upper hand eventually.
Furthermore, we ought to assist our people in oil business by extending
to them financial credit, so that the oil industry of the Chinese will
be forced out of the market. There are many Chinese on Kawaguchi Machi
in Osaka who are dealers of our manufactured goods in Mongolia and Manchuria.
They are strong competitors of our own business men in China. Our people
are greatly handicapped because of their high standard of living which
compels them to figure at a higher percentage of profit.

On the other hand, the Chinese also have their disadvantages. The goods
that they get are of an inferior quality, but the price that they pay is
at least 1O per cent higher than what our own people pay. Besides, they
are also obliged to pay Yen 2.70 more than our people for every ton of
goods transported, and yet they can undersell our merchants in Manchuria.
It clearly shows the inability of our own people. When one thinks of it,
it is really pathetic. The Chinese is single-handed, receiving no assistance
from the government. But the Japanese in Manchuria has every protection
from the government and long-term credit at a low rate of interest. Still
there are innumerable cases of failures. Hereafter, we should organize
a co-operative exporting house to China. The steamship lines and the South
Manchuria Railway should give it special discounts, and the government
in Kwantung should extend to it financial credit at a very low rate of
interest. Then we can hope to beat the Chinese merchants and recover our
trade rights, so that we may develop the special products of Manchuria
and send them to all parts of the world.

The first step in gaining financial and commercial control

{p. 48} of Manchuria and Mongolia lies in the monopoly sale of their
products. We must have the rights of monopoly for the sale of Manchurian
and Mongolian products before we can carry out our Continental Policy and
prevent the invasion of American capital as well as the influence of the
Chinese traders.

Although the products of Manchuria and Mongolia may go through any of
the three ports, Dairen, Yingko and Antung, nevertheless Dairen holds the
key to the situation. Every year 7,200 ships pass through this port with
a total tonnage of 11,565,000 tons. This represents 70 per cent of the
total trade of Manchuria and Mongolia. Fifteen navigation routes radiate
out from it with definite sailing schedule. Most of it is coastal sailing.
We have in our grasp the entire transportation system of Manchuria and
Mongolia. The monopoly sale of Manchuria's special products will eventually
come into our hands. When that comes true, we can develop our oceanic transportation
in order to defeat both Yingko and Antung. Then the large quantities of
beans which the central and southern parts of China consume, will depend
upon us entirely.

Moreover, the Chinese are an oil-eating people. In time of war, we can
cut off their oil supply and the life of the whole country will become
miserable. Bean cakes are important as fertilizers for the cultivation
of rice. If we have control of the source of supply as well as the means
of transportation, we shall be able to increase our production of rice
by means of a cheap supply of bean cakes and the fertilizers manufactured
as a by-product at the Fushun coal mines. In this way, we shall have the
agricultural work of all China dependent upon us.

In case of war, we can put an embargo on bean cakes as well as the mineral
fertilizers and forbid their exportation to Central and South China. Then
China's production of foodstuffs will be greatly reduced. This is one way
of build-

{p. 49} ing up our continental empire which we must not overlook. We
should remember that Europe and America also need large quantities of beans
and bean cakes. When we have a monopoly of the supplies and full control
of transportation, both on land and sea, the countries which have need
of the special products of Manchuria and Mongolia will have to seek our
good-will.

In order to gain trade monopoly in Manchuria and Mongolia, we must
have control of the complete transportation system. Only then can we have
the Chinese merchants under our thumb.

However, the Chunese are adepts in learning our tricks and beating us
at our own game. We have yet found no way by which we can compete successfully
with them in oilmaking and sail-boat transportation. After building up
the new system of transportation, our policy should be two-fold. On the
one hand, wreck the sail-boat trade by means of heavy investment in our
own system. On the other hand, encourage our men to learn all they can
from the Chinese sail-boat business. Another thing we should be careful
about is teaching the Chinese our industrial methods.

In the past we have established factories in Manchuria and Mongolia,
and carried on industries near the source of raw materials. This gave to
the Chinese the opportunity of learning our secrets and establishing competitive
factories of their own. Hereafter, we should ship the raw materials back
home and do the manufacturing there, and then ship the finished products
for sale in China and other countries. In this way we shall gain in three
ways: (1) provide work for our unemployed at home; (2) prevent the influx
of Chinese into Manchuria and Mongolia, and (3) make it impossible for
the Chinese to imitate our new industrial methods. Then iron of Penhsihu
and Anshan and the coal of Fushun should also be sent home to be turned
into finished products.

{p. 50} For all these considerations, the development of ocean transportation
becomes the more necessary. The Dairen Kisen Kaisha Company should be enlarged,
and our government should extend to it loans at low interest through the
South Manchuria Railway Company. By next year we should complete 500,000
tons of new ships for oceanic transportation. That will be sufficient to
dominate over the traffic of the East. For on the one hand we have the
South Manchuria Railway for land transportation; on the other hand, we
control the large quantities of products in Manchuria and Mongolia waiting
to be transported. The success of this enlarged activity in oceanic transportation
with Dairen as centre is assured by the iron laws of economics.

Gold Standard Currency Necessary

Although Manchuria and Mongolia are within our field of activities,
yet the legal tender there is still silver. It often contlicts with our
gold basis and works to our disadvantage. That our people have failed
to prosper as they should in these places is due to the existence of the
silver monetary system there. The Chinese have persistently upheld
the silver basis, and therefore have made it impossible for us firmly to
estabhsh our colonization plans on a firm economic foundation. We have
suffered from it the following disadvantages:

1. The money that we bring into Manchuria is of gold standard. When
we use it either for daily livelihood or for industry and trade, it has
to be exchanged into Chinese silver dollars. The fluctuation of exchange
is not infrequently as much as 20 per cent, resulting in serious loss to
our people. Speculation becomes a regular business and investing money
becomes a matter of gambling. When one plans an investment of two hundred
thousand yen, one may suddenly find that his capital has been reduced to
one hundred fifty or one hundred sixty thousand dollars due to

{p. 51} the drop in exchange. The creditor would then have to call in
the loans and business failures have often resulted.

2. The Chinese business men use silver money throughout and are free
from the effects of the exchange fluctuations. Therefore their "junk"
trade is prosperous. Although they have no scientific knowledge of the
exchange value of gold and silver, they always gain in the transaction.
They have a natural gift for it; we suffer the more. And we lose in spite
of our control of the transaction and special backing of banking houses.
Because of the handicap of the monetary system, people in Central and South
China always buy beans and bean cakes from their own people. We have no
chance against them. In consequence, we cannot conquer the whole of China.

3. With the silver standard in existence, the Chinese Government can
increase their notes to counteract our gold notes. Consequently our banks
will fail to carry out the mission of extending our country's influence.

4. If the gold standard is adopted, we can issue gold notes freely.
With the credit of the gold notes, we can acquire rights in real
property and natural resources and defeat the credit of the Chinese silver
notes. The Chinese will be unable to compete with us; and the currency
of the whole of Manchuria and Mongolia will be in our control.

5. The Government Bank of the Three Eastern Provinces, the Bank of Communications,
the Frontier Development Bank and the General Credit and Finance Corporation
have in circulation silver notes amounting to $38,000,000. Their reserve
funds in the form of buildings and goods are estimated at $1,350,000. It
is natural that the Chinese notes should depreciate. It is only by acts
of the Government that these notes are still in circulation. Until we have
entirely discredited the Chinese silver notes, we will never place our
gold notes in their proper place in Manchuria and Mongolia, much less obtain
the monopoly in currency

{p. 52} and finance of these two countries. With the depreciated and
inconvertible silver notes, the government of the Three Eastern Provinces
buys all kinds of products, thus threatening our vested interests. When
they sell these products, they demand gold from us which they keep for
the purpose of wrecking our financial interests including our trade rights
in special products. For these reasons, our gold notes are having a harder
time and a gold standard for currency becomes the more urgently necessary.

In view of the above-mentioned considerations, we must overthrow Manchuria's
inconvertible silver notes and divest the government of its purchasing
power. Then we can extend the use of our gold notes in the hope of dominating
the economic and financial activities of Manchuria and Mongolia. Furthermore,
we can compel the authorities of the Three Eastern Provinces to employ
Japanese financial advisers to help us gain supremacy in financial matters.
When the Chinese notes are overthrown, our gold notes will take their place.

Encourage Investment from a Third Power

It has been our traditional policy to exclude from Manchuria and Mongolia
investments of a third power. But since the Nine Power Treaty is based
on the principle of equal opportunity for all, the underlying principle
of the International Consortium which regards Manchuria and Mongolia as
outside its sphere becomes anachronistic. We are constantly under the watchful
eyes of the Powers, and every step that we take arouses suspicion. This
being the case, we had better invite foreign investments in such enterprises
as the development of electric power or the manufacture of alkali.

By using American and European capital, we can further our plans
for the development of Manchuria and

{p. 53} Mongolia. By so doing, we shall allay international suspicion
and clear the way for larger plans on the one hand and induce the Powers
to recognize the fact of our special position in that country on the
other. We should welcome any power wishing to make investment, but we must
not allow China to deal with the leading countries at her will. As we are
anxious that the Powers recognize the fact of our special position in Manchuria
and Mongolia in political as well as economic affairs, we are obliged to
intervene and share all responsibilities with her. To make this a customary
practice in our diplomatic dealings, is another important policy for us.

The Necessity of Changing the Organization of the South Manchuria Railway

The South Manchuria Railway Company functions in Manchuria as the Governor-General
of Korea did there before the annexation. In order to build up our new
Continental Empire, we must change the organization of that Company so
as to break away from the present difficulties. The functions of this Company
are varied and important. Every change of cabinet involves a change of
the administration of the South Manchuria Railway, and conversely every
activity of the South Manchuria Railway also has important consequences
on the cabinet. This is because the South Manchuria Railway is semi-governmental,
with final authority resting in the cabinet. For this reason, the Powers
invariably look upon this railway as a purely political organ rather than
a business enterprise. Whenever a new move is made for the development
of Manchuria and Mongolia, the Powers would invoke the Nine Power Treaty
to thwart the plans of the South Manchuria Railway. This has greatly damaged
the interests of our empire.

Considered from the point of view of domestic admini-

{p. 54} stration, the South Manchuria Railway is subject to a quadruple
control. There are the Governor of Kwantung, the Chief Executive of Dairen,
the Consul-General at Mukden, besides the President of the South Manchuria
Railway itself. These four officers must meet and exchange views at Dairen
before anything is undertaken. What is discussed in the meeting held in
camera often leaks out to the Chinese authorities of the Three Eastern
Provinces. They in turn would try to obstruct any forward movements of
the South Manchuria Railway authorization; it again has to run the gauntlet
at the Departments of Foreign Affairs, of Railways, of Finance and of Army.
If these ministers do not agree, the matter is dropped. Therefore, although
the present prime minister realizes his own incompetence, he has nevertheless
taken concurrently the portfolio of foreign affairs, so that our movements
in Manchuria may be kept confidential and the execution of our plans may
be swift and decisive. On account of these reasons, the South Manchuria
Railway should be radically reorganized.

[The reorganization of the South Manchuria Railway as proposed in
the Tanaka Memorial, actually took place as outlined on October 1, 1936,
coincident with the thirtieth anniversary of the administration of the
Kwantung Leased Territory and the Port of Dairen. This reorganization was
about as indicated in the Tanaka Memorial, involving two significant steps:
(1) introduction of a unified management of all railways in Manchuria and
North Korea and (2) creation of a subsidiary Industry Department which
emphasized the necessity for the general economic development of Manchuria.]

All appurtenant enterprises which are profit-making should be made independent
companies under the wings of the South Manchuria Railwav so that we may
take

{p. 55} determined steps on the conquest of Manchuria and Mongolia.
On the other hand, Chinese, Europeans and Americans should be invited
to invest money in the South Manchuria Railway on the condition that we
have a plurality of its stocks.1 In that event the control of the company
is in our hands, and our mission from the empire can be discharged more
vigorously. In short, by inviting international participation in the
South Manchuria Railway, we can blind the eyes of the world. Having
achieved that, we can push our advance in Manchuria and Mongolia at our
will, free ourselves from the restraints of the Nine Power Treaty and strengthen
our activities in that country with foreign capital.

The important appurtenant enterprises of the South Manchuria Railway
are:

1. Iron and Steel. Iron and steel are closely connected with national
development. Every country to-day attaches great importance to it. But
because of the lack of ores, we have found no solution to this problem.
Hitherto we have had to import steel from the Yangtse Valley and the Malay
Peninsula. But according to a secret survey of our General Staff, a wealth
of iron mines are found in many places in Manchuria and Mongolia. A conservative
estimate of the reserve is 10 billion tons. At first when there was a lack
of technique, the Anshan Iron and Steel Works was involved in an annual
loss of Yen 3,000,000. Later, new methods were discovered, and the technique
developed so that during 1926 the loss was only Yen 150,000 and a year
later there was a profit of Yen 800,000. If the furnace is improved, we
ought to earn at least Yen 4,000,000 a year. The quality of the ore at
Penhsihu is excellent. By amal-

[ 1 Japan has insistently invited the United States to invest money
in the development of Manchuria. Even after the outbreak of the undeclared
war in China, Japanese financiers and diplomatic officials launched an
ambitious campaign of publicity in the United States with the object of
securing a loan of $50,000,000 for the development of heavy industries
in Manchuria.]

{p. 56} gamating it with the Anshan Iron Works, we shall have the comfort
of being self-sufficient in iron and steel.

The iron deposits in Manchuria and Mongolia are estimated at 1,200~000~000
tons, and the coal deposits 2,500,000,000 tons. This coal ought to be sufficient
for smelting the iron ores. With such large amounts of iron and coal at
our disposal, we ought to be self-sufficient for at least seventy years.
At the rate of $100.00 profit on each ton of steel, for 350,000,000 tons
of steel we shall have a profit of Yen 35,000,000,000. This is a tremendous
asset to our economic resources. We shall save the expense of Yen 120,000,000
which we pay for the importation of steel every year. When we can have
sufficient iron and steel for our own industries, we shall have acquired
the secret for becoming the leading nation in the world. Thus strengthened,
we can conquer both the East and the West. In order to attain this goal,
the iron works must be separated from the South Manchuria Railway. Such
unified control will keep China from preventing us to become self-sufficient
in iron and steel.

2. Petroleum. Another important commodity which we lack is petroleum.
It is also essential to the existence of a nation. Fortunately, there lie
in the Fushun Coal Mine 5,200,000,000 tons of shale oil, from every hundred
catties of which six catties of crude oil may be extracted. By means of
American machinery, every hundred catties will yield nine catties of refined
oil good for motor cars and battleships. At present Japan imports from
foreign countries 700,000 tons of mineral oils every year valued at Yen
60,000,000. These figures are on the increase. As there are 50 billion
tons of shale in the Fushun mines, the yield calculated at 5 per cent would
be 250,000,000 tons; at 9 per cent, 450,000,000 tons of oil. Taking an
average of the two, the yield would be 350,000,000 tons, and assuming the
value of the oil to be fifteen yen a ton, the oil shale con

{p. 57} tained in the Fushun Mine would bring us Yen 2,250,000,000.
This will be a great industrial revolution for us. From the standpoint
of national defence and national wealth, petroleum is a great factor. Having
the iron and petroleum of Manchuria, our army and navy will become impregnable
walls of defence. That Manchuria and Mongolia are the heart and liver of
our empire, is a truthful saying. For the sake of our empire, we should
be congratulated.

Agricultural Fertilizer - Ammonia Sulphate and Other Products

Agricultural fertilizer is a great necessity for the production of foodstuffs.
Chemical fertilizers depend upon the ammonia sulphate extracted from coal.
The Fushun coal yields especially good results. At present, our total consumption
of ammonia sulphate is 500,000 tons. Of this, only half is manufactured
at home, using the coal from the Kailan or the Fushun Mining Companies.
The remaining half is imported from abroad at the cost of Yen 35,000,000
a year. With our agricultural work daily increasing and in view of the
development of our new empire in Manchuria and Mongolia, we shall easily
need 1,000,000 tons of ammonia sulphate every year during the next ten
years. From the soot gathered from the burning of Fushun coal connected
with the manufacture of steel, we could produce large quantities of ammonia
sulphate. If the yield is put at 300,000 tons a year, we shall add an annual
income of more than Yen 40,000,000. In fifty years, this will mount up
to Yen 2,000,000,000. This money could be used for the improvement of our
agriculture. If there is any surplus, we can buy bean cakes with it and
then invade the farms all over China and in the South Sea Islands. In order
to accomplish this, we must separate this enterprise from the

{p. 58} South Manchuria Railway. We shall then be able to control the
fertilizers of the Far East.

Soda and Soda Ash

We import 100,000 tons of Soda Ash at the cost of more than Yen 10,000,000
a year. Both soda and soda ash are valuable materials for military and
industrial purposes. Soda is derived from nothing more than salt and coal,
both of which are cheap and abundant in Manchuria and Mongolia. If we go
into this manufacture, we can supply not only ourselves but can also sell
it to China with a view to controlling its industrial products. We ought
to gain from it a profit of at least Yen 150,000,000 a year. We can also
supply our own military and chemical needs. Again this industry must be
separated from the South Manchuria Railway.

Magnesium and Aluminium

According to the independent surveys of the South Manchuria Railway
Company and Dr. Honta of Tohoku University, magnesite and aluminium is
a very promising business (in Manchuria). Magnesium is found in the surroundings
of Tashichiao, and aluminium in the vicinity of Yentai. The deposit is
one of the largest in the world. A ton of magnesite is worth Yen 2,000
and a ton of aluminium is worth about Yen 1,700. An estimate of the deposits
of both minerals in Manchuria is Yen 750,000,000. These substances are
especially useful for making aeroplanes, mess kits in the army, hospital
apparatus and vessels, and other important industries. The United States
alone has extensive deposits of these substances. The output of our country
is one ton a year ! Such materials are becoming more useful every day,
but the supply is insufficient. Its price is growing high, as if never
reaching a limit. The

{p. 59} deposits in our territory of Manchuria and Mongolia are nothing
less than a God-given gift. This metal is really precious, being indispensable
to both our industry and national defence. It also should be made an independent
business, separate from the South Manchuria Railway. Its manufacture should
be in Japan, so as to keep the Fengtien Government from imitating it on
the one hand and to avoid the watchful eyes of the British and American
capitalists on the other. After we have gained control of it in the Three
Eastern Provinces, we may harness the water power of the Yalu River to
work on these metal ores. In view of the development of aircraft, in the
future all the world will come to us for the materials necessary for aeronautics.

If all the enterprises mentioned above were made in dependent undertakings,
they would make rapid progress and bring us at least a profit of 60 billion
yen a year. The industrial development in South Manchuria means much to
our national defence and economic progress. It will help us to build the
foundation of an industrial empire. As to the cultural undertakings such
as hospitals, schools and philanthropic institutions, they are our signal
towers in our advance into Manchuria and Mongolia. They are the institutions
for spreading our national prestige and power. More specifically they are
the baits for rights and privileges. Let us separate all these from the
South Manchuria Railway in order that we may redouble our efforts and advance
into North Manchuria to reclaim the sources of great wealth there.

When these important undertakings become independent and are free to
develop without the interference of our officials, they will naturally
become channels of national prosperity. On the wings of economic development,
we could make rapid advance without either arousing the suspicion of the
Powers or the anti-Japanese activities of the people of the Three Eastern
Provinces. Such hidden

{p. 60} methods would enable us to build the New Continental Empire
with ease and efficiency.

The foreign loans for the South Manchuria Railway must be confined to
those railroads already completed. Other railways built by us but nominally
under Chinese control, can either be amalgamated with the completed lines
or made independent according to the desire of the investing nations. The
slogan of "Equal Opportunity" helps us to get foreign loans as
well as to dispel suspicion of our designs in North Manchuria. At any rate,
we shall need foreign capital to develop our Continental Empire. When the
South Manchuria Railway is open to foreign investments the Powers will
be glad to lend more to us and China can do nothing to block it. This is
an excellent way to further our plans in Manchuria. We should lose no time
in doing it. As to the wealth concentrated in the northern part of Manchuria
and Mongolia, we should do likewise. The two new railways from Kirin to
Hueining and from Changchun to Talai, as well as the lumber and mining
interests, should also be managed as separate institutions.

The South Manchuria Railway will also be greatly enriched by our exploits
in North Manchuria. In undertaking this, we must permit foreign investment
on the South Manchuria Railway so that any profit that it makes is shared
by other nations. When they share in the profits, no one will interfere
with our activities in North Manchuria. Already Chinese immigrants are
pouring into South Manchuria in large numbers. Their position will become
stronger every day. As the right of renting land in the interior is not
yet secured, our immigrants are gradually losing ground.

Even if our government's backing will maintain our people there, they
cannot compete with the Chinese due to the latter's low standard of living.
Our only chance now

{p. 61} is to defeat the Chinese by heavy capitalization. This again
necessitates the use of foreign loans. This is so, especially because the
riches of North Manchuria are even not accessible to the Chinese immigrants.
We must seize the present opportunity, and hasten the progress of immigration
by our own people and take possession of all rights there so as to shut
out the Chinese.

But in order to encourage immigration, rapid transportation is essential.
This will afford both facilities to our people and bring the natural resources
there to the would-be market. Moreover, both Russia and ourselves have
been increasing armaments. On account of geographical positions, we have
confiicting interests. If we want to obtain the wealth of North Manchuria
and to build up the New Continent according to the will of Emperor Meiji,
we must rush our people into North Manchuria first and seek to break the
friendship between Russia and China. In this way, we can enjoy the wealth
of North Manchuria and hold at bay both Russia and China. In case of war,
our immigrants in North Manchuria will combine with our forces in South
Manchuria and at one stroke settle the problem forever. In case this is
not possible, they can still maintain their own in North Manchuria and
supply the rest of us with food-stuffs and raw materials. As the interests
of North Manchuria and our country are so wrapped up, we could march directly
into North Manchuria and pursue our settled policy.

The Necessity of Establishing a Colonial Department

Our exploitation of Manchuria takes a variety of forms. Often those
in authority take such different views that even the most profitable undertaking
for our country cannot be carried out. Because of the lack of speed, our
secrets are often exposed and are made propaganda materials by the

{p. 62} Mukden Government much to the detriment of our country in international
relations. Whenever a new undertaking is projected in Manchuria and Mongolia,
it will become the subject of discussion of tens of meetings and conferences
in Dairen. Not only the approval of the four-headed government there is
necessary, but also the sanction of the cabinet at home has to be secured
before anything can be carried out. Because of all these obstacles, any
undertaking will take months and months before any definite results are
seen. In the process it is possible for the Chinese to employ Japanese
adventurers to steal our secrets so that before a project is launched it
is often reported to the Chinese and in turn it becomes common property
of the world. We are suddenly brought under the check of world opinion,
and more than once we have incurred hardship in putting into practice our
policy toward Manchuria and Mongolia. Furtherlnore, the opposition party
has also made capital out of what they find in these regions in order to
attack the government. All these have many serious results with our diplomatic
relations.

Henceforth, we must change our practice in order to proceed more adroitly.
The centre of control must be in Tokyo. That will (1) insure secrecy;
(2) stop China from knowing beforehand our plans; (3) avoid the suspicion
of the powers before the thing is done; (4) unify the multiple control
in Manchuria and (5) bring the government agencies in Manchuria and Mongolia
in close touch with tfie central government so as to deal with China with
undivided power.

For these reasons we should follow the original plan for absorbing Korea
laid down by Ito and Katsura and establish a Colonial Department, the special
function of which is to look after the expansion in Manchuria and Mongolia.
The administration of Formosa, Korea and Saghalien Island may be its nominal
function, but our expansion in Manchuria

{p. 63} and Mongolia is its real purpose. This will blind the eyes of
the world on the one hand and forestall the disclosure of secrets on the
other.

It is my personal conviction that the fact that the absorption of Korea
could not be effected during the administration of Ito, was due to the
lack of a special office for Control. Therefore, there were always differences
of opinion and secret policies were impossible. Such a state of affairs
played into the hands of international obstruction and Korean opposition.
Then a number of propagandists went to Europe and America as well as Korea
itself, declaring that we firmly respected the independence of Korea and
had no designs on an inch of Korean territory. The result of their work
was the recovery of international confidence. After that, a Colonial Department
was estabiished under the pretence of being intended for Formosa. Then
we seized the opportunity and the object was gained!

It goes to prove that in order to undertake colonization and immigration,
a special office for it is absolutely necessary. Moreover, the creation
of a new empire in Mongolia and Manchuria is of utmost importance to the
existence ofJapan. It is necessary to have a special office, in order that
the politics in that vast territory may be controled from Tokyo. The officers
in the field should not only take orders, they should not interfere with
the execution of policies where they please. This will insure secrecy;
and the opposition nations have no chance of getting into the secrets of
our colonial activities. Then our movements regarding Mongolia and Manchuria
will be beyond the reach of international public opinion and we shall be
free from interferences.

As to the subsidiary enterprises of the South Manchuria Railway such
as the Development Company, the Land Company, and the Trust Company, the
power of supervision and planning should also be in the colonial office.
They

{p. 64} should all be under united control in order that they may all
help in the general policy of expansion in Mongolia and Manchuria of the
Imperial Government and complete the creation of the new empire.

The Taling River Valley on the Peking-Mukden Railway

The Taling River Valley is a wide area sparsely populated but infested
with bandits. Many Koreans have made investments here, especially in rice
fields. Judging from its resources, this region is bound to be prosperous.
It will also be an advantageous foothold for us if we want to expand into
the Jehol region. We should give full protection to our Korean subjects
here and wait for an opportunity to secure from China the right of colonization
so that our immigrants may live here and act as our vanguards to Jehol
and Mongolia. In case of warfare, this valley will be a strategic point
to quarter large armies of soldiers. We shall then not only check the Chinese
soldiers from advancing north, but also hold the key to the immense wealth
of South Manchuria.

When Koreans come into this region we should finance them through
our Trust and other financial organs with a view to gaining for these organs
the actual ownership while the Koreans may satisfy themselves with the
right of farming only. Ostensibly the ownership of land must reside
with the Koreans. It is a convenient way of securing rights from the Chinese
government. Henceforth the Trust companies and financial organs should
give them full backing when our own and Korean subjects wish to gain land
ownership. If they need money to buy farms from the Chinese, the financial
organs should also come to their aid. Unnoticeably we shall gain control
of the better rice fields which we may give to our own immigrants. They
shall

{p. 65} displace the Koreans who in turn may go on opening new fields,
to deliver to the convenient use of our own people. This is the policy
with respect to the colonization of rice fields and bean farms. As to the
policy for herd farming, the Development Company should be especially entrusted
gradually to expand, eventually placing all the wealth of herds at the
disposal of our country.

This same company may also take care of horse breeding and select the
best out of Mongolia for the use of our national defence.

Precaution Against Chinese Migration

Recently the internal disturbances in China have driven large hordes
of immigrants into Mongolia and Manchuria, thereby threatening the advance
of our migration. For the sake of our activities in this field, we should
not fail to take precautions. The fact that the Chinese government welcomes
this migration and does nothing to hold back the tide oppresses our policy
even more seriously.

A noted American sinologue has made the statement the Mukden authorities
are carrying out such effective government that all people are moving into
their territory. Therefore, the influx of immigrants is looked upon as
a mark of effective government of Mukden authorities. We, of course, are
concerned. Unless we put a stop to it, in less than ten years our own policy
of emigration will prove an instrument for China to crush us with. Politically
we must use police force to check this tendency as much as possible and
economically our financiers should drive the Chinese out with low wages.
Furthermore, we must develop and expand electric power to displace human
labour. This will keep out Chinese immigrants as well as monopolize the
control of motor force as a first step toward controlling the industries
development of this vast region.

{p. 66} Hospitals and Schools

Hospitals and schools in Manchuria must be independent of the South
Manchuria Railway. For the people have often considered these institutions
of imperialism and refuse to have anything to do with them. When these
are separated and made independent institutions we shall be able to make
the people realize our goodness so that they will be thankful to us ...
But in establishing schools emphasis should be laid on normal schools for
men and women. Through these in educational work we may build up a substantial
good-will among the people toward Japan. This is our first principle
of cultural structure.

[The Manchurian conference which drew up the memorial came to a close
on July 7, 1927, and on its anniversary, just ten years later, the Japanese
began their campaign for the domination of North China. It was on July
7, 1937, that the illegal manoeuvres at Lukouchiao, near Peiping, precipitated
the clash which led to Japan's undeclared war on China. The same Manchurian
militarists who had attended the conference were in command in North China
when the crisis developed into a series of major offensives against
the Chinese. The fact that they started their North China campaign
on the anniversary of the conference may have been a coincidence. But if
this decision to attempt the conquest of China was reached on July 7th,
nothing could be more appropriate, in Japanese eyes, than that the campaign
should be launched on the anniversary of that date. In spite of their modern
ideas, Japanese still retain a great many of the old superstitions of their
feudal days and a belief in the significance of dates and anniversaries
is not confined to the Japanese.

But even before this attack on China was launched, a great many of the
aims outlined in the Tanaka Memorial had been accomplished, and completion
of the programme

{p. 67} was well on its way. With the seizure of Manchuria and the setting
up of the puppet government of Manchukuo, the foothold in China which had
been advocated by Hideyoshi, Tanaka, and dozens of other Japanese patriots
had been established, Jehol and Chahar had been seized and Inner Mongolia
was full of Japanese agents. Efforts to detach five northern provinces
and set up a puppet government had failed, but by means of bribery and
intrigue the authority of the Chinese government in this area had been
weakened. A puppet government had been set up in a smaller area and foreign
trade in North China driven out by officially encouraged Japanese smuggling.

In spite of great handicaps the National government of China was making
great progress in the Yangtse Valley and was extending its influence in
the South and the South-West.

Baron Tanaka had warned the emperor how the progress of China would
endanger their plans and so they hastened on with their programme to take
North China and Inner Mongolia. At present the avowed object of the Japanese
military machine is to destroy the government of China, and in fact to
accomplish even more than was proposed in the Twenty-One Demands.

A careful review of past events shows very convincingly that immediately
after the conclusion of the Manchurian conference the Japanese military
authorities began step by step, to carry out the programme outlined in
the Tanaka Memorial. Many of the moves were secret and many were delayed,
waiting for an opportune moment. But there has been no deviation from the
plan. Every action of the Japanese militarists and every statement by the
Japanese diplomats has been along the lines set by Baron Tanaka. A great
deal of his programme has already been accomplished. If Japan should conquer
China she would then be in control of one third of the population of the
world and well on her way toward her goal of world domination.

{p. 68} Japan's attack on Manchuria set the pattern for the series
of aggressions which followed by Germany and Italy. Japan had proven
that she could safely defy the League of Nations and break treaties.
Soon thereafter Japan, Germany and Italy entered into the so-called Anti-Comintern
pact which was later strengthened and became the Axis alliance. Although
the terms of these pacts were never made public, it is obvious to all that
they were agreements for division of the world between these three powers,
that, as a reward for her support, Japan would receive the hegemony of
East Asia.

With a victorious Axis, Japan would achieve tne next to the final part
of Baron Tanaka's programme. With control of the vast resources in material
and man power in East Asia she would only have to organize and wait until
an approeriate moment to place all the white races of the world under the
rule of the Son of Heaven.]

{end of the Tanaka Memorial & Carl Crow's commentary; the following
comments are mine:}

To defend itself from the Western onslaught, Japan became a Prussian
state like the Kaiser's Germany. Oswald Spengler's book The Hour of
Decision heaps praise on Bismarck and Moltke (e.g. p. 197). He writes,

'the Prussian style demands ... that economic life should be disciplined
by a powerful State, which is the precondition for free initiative
in private enterprise.' (p. 191).

'"Prussian" is also the aristocratic ordering of life
according to the grade of achievement.' (p. 192).

'This idea of a "Prussian" existence will be the starting-point
for the ultimate overcoming of the World Revolution.' (p. 193).

The West of the 1950s had its own similarities to Prussianism - which
I now reject. The pacifist religions (Buddhism, early Christianity, and
the like), condemned by Rousseau, Nietzsche, Spengler and Waton for their
submissiveness, cowardice, and contemplativeness, have more chance of helping
us to live in "One World" than do the martial cultures of Aryanism,
Zionism, Marxism and State Shinto. At the same time, we do need an ordering
system. There is a case for the United Nations system, not to enforce a
uniform global culture, but to protect us from one another.

If the US retains its bases in Japan, its manufacturing industry will
continue to be hollowed out by Japanese exports, as the quid pro quo; if
the US vacates those bases, Japan might become a nuclear power. Prime Minister
Tsutomu Hata admitted on June 17, 1994 that Japan can build nuclear weapons,
although it had not done so (Canberra Times, June 19, 1994). The
Australian of January 31, 1994 ran a story "Leak tips Japan in
N-bomb push", about a secret British report. North Korea is the excuse
that Japan uses; that's why the US is pressuring North Korea so hard.

On May 17, 2000, Prime Minister Yoshio Mori said, "Japan is a divine
country with the Emperor at its centre" (Melbourne Age, May 18, 2001).
In a letter in The Australian of June 5, 2001, former parliamentarian
Tom Uren wrote that Mori had declared, "I have promoted ideas which
the government has tended to avoid, and have continued to affirm that Japan
is a country of gods, with the emperor at its centre".

Shintaro Ishihara was elected Governor of Tokyo despite "his recent
claim that Chinese had fabricated the Nanking massacre" (Sydney
Morning Herald, April 13, 1999). Ishihara also has referred to non-Japanese
immigrants as "sangokujin", which has the connotation of "nigger"
or "wog" (Australian Financial Review, May 1, 2000).

This is the Japan that during the late 1980s, when it was buying up
the world, was calling its critics "racists", "xenophobes",
and "Japan bashers". ==

Sir: In regards to your comments re: the Tanaka Memorial (many thanks
for the site) in your intro statement you say:

"Of course, the Japanese were not the only ones to attempt world
conquest. Napoleon, the Czar who defeated him, the British Empire, the
Kaiser's Germany, the Soviet Union, Hitler, the United States, and the
Zionists, have all attempted it."

My question is a request for clarification- WHEN did the USA ever
"attempt world conquest"- that was one war I seem to have
missed- and who are "the Zionists" and when did they attempt
world conquest? IF by "Zionists" you mean the State of Israel,
I'd like to hear that one too...IF Zionist means something other than the
State of Israel, then what precisely do you mean?

Thank you again for putting this fascinating document out there.. it's
one of those things one hears about obliquely here and there in a lifetime
of studying history.. but the first time in 55 years I was actually able
to read it.

Sincerely,
Ranald T Chardoul, USA DunRanull@AOL.com

REPLY

Ranald,

> WHEN did the USA ever > "attempt world conquest"
> - that was one war I seem to have missed

The US network of bases around the world constitutes an empire, a defacto
Empire despite pretensions otherwise.

The US currency, being the world's reserve currency, allows the US to
dominate world finance despite being the biggest debtor. The World Bank
is a branch of the US Treasury.

These things constitute an attempt at world domination.

In a more formal sense, the Baruch Plan of 1946 was a plan for World
Government, put to the USSR by the US President. It was drafted by
David Lilienthal and Bernard Baruch, both Jewish: baruch-plan.html.

Read more about it in the report One World Or None, issued in
1946 in conjunction with the Baruch Plan (Note the preponderance of Jews
among the high-profile writers): one-world-or-none.html.

Then go back to the Treaty of Versailles in 1919. There was an attempt
to form the League of Nations as a World Government. This was what Wilson
wanted, as well as Wall St bankers such as Jacob Schiff: toolkit3.html.

> who are "the Zionists" and when > did they attempt world conquest?

David Ben-Gurion on several occasions proclaimed that World Peace,
meaning World Government, was a Jewish idea.

In 1962, writing in LOOK magazine, issue of Jan. 16, he predicted World
Government by 1987. The Supreme Court of Mankind would be housed in Jerusalem.
World Unity would be based on the vision of the Jewish prophet Isaiah.

{start} The image of the world in 1987 as traced in my imagination:
the Cold War will be a thing of the past. Internal pressure of the constantly
growing intelligensia in Russia for more freedom and the pressure of the
masses for raising their living standards may lead to a gradual democratization
of the Soviet Union. On the other hand, the increasing influence of the
workers and farmers, and rising political importance of men of science,
may transform the United States into a welfare state with a planned economy.
Western and Eastern Europe will become a federation of autonomous states
having a Socialist and democratic regime. With the exception of the USSR
as a federated Eurasian state, all other continents will become united
in a world alliance, at whose disposal will be an international police
force. All armies will be abolished, and there will be no more wars.
In Jerusalem, the United Nations (a truly United Nations) will build
a shrine of the Prophets to serve the federated union of all continents;
this will be the scene of the Supreme Court of Mankind, to settle
all controversies among the federated continents, as prophesied by Isaiah.
Higher education will be the right of every person in the world. A pill
to prevent pregnanacy will slow down the explosive natural increase in
China and India. And by 1987, the average life-span of man will reach 100
years.

{p. 31} ... Judaism was the first religion to make world peace a
central element in its eschatology.

{p. 32} Yet quite often peace implies domination, and in many
languages the word "pacify" also means "conquer". King
Solomon could afford to be a king of peace because he ruled "over
all the kings from the Euphrates to the land of the Philistines, and to
the border of Egypt."

... The peaceful world that the Jewish prophets envisioned was to
be ruled over by a scion of the House of David, later called the
Messiah.

The Jews ... were always inspired by the belief that in the future
world of peace and justice they would serve as spiritual leaders {i.e.
rulers}. This vision of a world mission gave them the strength to suffer
severe persecution and propelled them to the forefront of various messianic
and "idealistic" movements in modern times like those of human
rights, socialism, and communism.